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The certainty of climate change remains a public controversy despite the consensus among approximately 97% of active climate researchers, who not only agree that the Earth’s climate is changing but also state that this change is intensified by human activity, predominantly carbon emissions 1. The disconnect between the public and the experts is partly due to poor understanding of the mechanisms involved in climate change as well as the differences among essential concepts such as weather...
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Climate Change: Ice Melt, Greenhouse Gas, and Species Range Activities - Concept
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[Chapter 7.Climate changes and insurance]

Matthieu Robineau

    Journal International De Bioethique Et D'Ethique Des Sciences
    |August 29, 2019
    PubMed
    Summary

    Climate change introduces uncertainty for the insurance industry, altering risk frequency and intensity. This analysis examines how insurance adapts to these evolving climate risks, considering both traditional and innovative financial solutions.

    Area of Science:

    • Environmental Science
    • Risk Management
    • Financial Services

    Background:

    • Climate change presents significant, evolving risks to the insurance sector.
    • Traditional insurance models struggle with the unpredictable nature of climate-related events.
    • The insurance industry faces challenges in accurately assessing and pricing climate-driven risks.

    Purpose of the Study:

    • To analyze how the insurance industry incorporates climate change considerations.
    • To explore the actuarial and political dimensions of climate change within insurance.
    • To evaluate the sustainability of existing insurance products and the rise of innovative financial instruments.

    Main Methods:

    • Review of actuarial principles and insurance normativity in the context of climate change.

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  • Analysis of classic insurance cover types facing climate-related threats.
  • Examination of innovative financial products addressing climate risks.
  • Main Results:

    • Insurance principles and norms are being challenged by climate change uncertainty.
    • The long-term viability of traditional insurance products is threatened.
    • Innovative financial solutions are emerging to address climate-related risks.

    Conclusions:

    • The insurance sector must adapt its actuarial and political frameworks to climate change.
    • A shift towards more innovative, finance-oriented solutions is necessary for climate risk management.
    • Understanding and managing evolving climate risks is crucial for insurance sustainability.